“The mediation insures a stopgap measure,” Castrataro said. “It insures that the bank will have to listen.”
Castrataro said he’s seen mediation assist clients in obtaining loan modifications, reductions in their principal owed and, in cases where foreclosure cannot be avoided, a significant reduction in the amount of debt they owe long term. He believes mediation would be a win-win for homeowners and the court system.
“Mediation will force banks to be accountable. It will also free up a lot of time in the courtroom,” he said.